Performance Overview

For the six-month period ended June 30, 2021, the Group reported a 20.2% increase in Profit before tax over the comparative six-month period in 2020. Profit before tax of $74m was driven by three main factors: an improvement in gross profit margins, an improvement in credit outlook in international markets, and an increase in the return on investment of surplus funds. Owing to improvement in the efficiency of the waste water treatment facility, GP margins increased to 48% from 46% over the prior period as distillery alcohol product normalized in 2021 compared to 2020.

An improvement in international markets, both in terms of revenue and credit outlook, directly impacted the Expected Credit Loss (“ECL”) Model resulting in a significant write back ($4m) of this selling expense at June 30, 2021. In the prior period, consideration of the specific COVID-19 factor in accordance with International Accounting Standards had an exceptional negative impact on operating margins. The increase in returns on the investment of surplus funds $2.5m or 46% further secured growth in Profit before tax for the six-month period.

Revenue growth over prior year was mainly driven by recovery in Australasia (Bitters), North America (Bitters), Europe (Bitters and Rum), and the UK (Bitters). These markets collectively contributed $43.6m in revenue growth which was then offset by the contraction in the local market. The Group has faced more severe revenue challenges in the local market this year compared to the first year of the Pandemic (2020) as rising COVID-19 cases locally directly impacted our staff and negatively impacted production.

In consideration of the Group’s performance, the Board of Directors is pleased to recommend an interim dividend of $0.09 per share with a record date of  October 06, 2021 and payment date of October 25, 2021.

As we look forward to the remaining fiscal year, we will continue to drive revenue and focus on maximizing global opportunists while supporting recovery in the local markets. While uncertainty and volatility may remain as the world continues to recover from the global Pandemic, we are confident that market recovery will rebound in our favour over the remaining half of this fiscal year.

Mr. Terrence Bharath
Chairman
July 27, 2021